Washington, United States. A group of U.S. states including California and New York is preparing a lawsuit to block Paramount Skydance’s proposed $110 billion acquisition of Warner Bros, sources familiar with the matter told Reuters on Friday. The move would mark the most assertive action so far by states seeking a leading role in U.S. antitrust enforcement.
State enforcement effort
The planned lawsuit comes as state authorities push to take the forefront in antitrust enforcement while federal agencies in the Trump administration are seen as taking a more business-friendly approach.
It was not immediately clear which other states would join the lawsuit. A spokesperson for California Attorney General Rob Bonta’s office said the state’s investigation remains active but declined further comment.
Regulatory and political scrutiny
Analysts have viewed Paramount as facing an easier path to regulatory approval from U.S. federal antitrust authorities, in part because of its political connections. Paramount CEO David Ellison’s father, Oracle co-founder Larry Ellison, has cultivated ties with President Donald Trump.
Market reaction and industry concerns
Warner Bros shares fell after the news and were down 1.9%. Paramount shares extended losses slightly and were down 7%.
The proposed transaction has also drawn opposition from actors, writers and others in Hollywood over concerns that it could eliminate jobs. The deal has been closely watched in Hollywood and on Wall Street because it would combine some of the entertainment industry’s long-established franchises.